Many separating couples ask whether it is possible to divide finances without divorcing. The answer is yes. If you do not wish to divorce or dissolve your civil partnership, you can still reach an agreement about financial matters through a Separation Agreement.
It is important to understand that separating from your spouse does not automatically end the financial ties between you.
In England and Wales, financial claims between spouses remain open until a final clean break financial order has been made by the court, whether that is by a judge approving an agreement reached by consent, or a judge making an order where parties have been unable to agree. This means that even after separation, either spouse may still have potential claims against the other’s finances unless those arrangements have been formally resolved.
Without a final Financial Order, a former spouse may be able to make a claim against:
- Property
- Savings & investments
- Pensions
- Future windfalls, such as inheritance or lottery winnings
- Income.
Can you divide finances without divorcing?
If you have separated from your spouse but are not ready to start divorce proceedings, a Separation Agreement can help you record the arrangements you have reached to reduce the risk of future disputes.
It can be particularly useful where you want to deal with finances, property and parenting arrangements amicably when you are still unsure whether you wish to apply for a divorce.
What is a Separation Agreement?
A Separation Agreement is a formal written agreement between separating couples which sets out the arrangements that have been made in relation to:
- Finances
- Property, assets & liabilities
- Children & parenting arrangements (if appropriate).
Why should I consider a Separation Agreement?
There are many reasons why entering into a Separation Agreement may be beneficial, including:
- You wish to separate but do not want to end your marriage or civil partnership through divorce or dissolution.
- You have been married for less than 12 months and cannot yet apply for a divorce.
- You want to formally record how assets and liabilities will be divided.
- You have reached an agreement and want to implement it but the conditional divorce order has not yet been made.
- You want to establish clear arrangements for your children.
- You wish to record your respective positions so that, if divorce proceedings are issued in the future, the Court can be asked to convert the agreement into a binding Financial Order.
Is a Separation Agreement legally binding?
In England and Wales, a Separation Agreement is not automatically legally binding in the same way as a Court Order. However, a properly drafted agreement that has been entered into freely and with the benefit of legal advice is likely to be given significant weight by the Court in any future proceedings.
How do I obtain a Separation Agreement?
Married couples, civil partners and unmarried couples can all enter into a Separation Agreement.
For unmarried couples, a written agreement can be particularly important, as they do not have the same automatic financial and property rights as married couples in England and Wales. Recording arrangements in writing can therefore help protect both parties’ interests.
At Birkett & Co Solicitors, our family law specialists can guide you through the process of negotiating and preparing a Separation Agreement, helping you understand options and protecting your interests throughout.
If you have been asked to sign a Separation Agreement, it is important that you fully understand the terms before doing so. Our experienced family lawyers can provide clear advice and support to help you achieve the best possible outcome.
Contact us
If you would like advice about Separation Agreements or any other family law matter, please contact our team to arrange a free initial consultation.